Intro to Business Lesson 2.2.2

Operations-the activities a business takes on every day to earn profits and increase the value of their business
Manufacturing- processing raw materials and converting them into finished goods

Business Operations

• Activities a business takes on every day to earn profits and increase the value of its business

• How work is performed in a business and helps define its success

• Help measure business performance by monitoring each department's performance, thereby improving the business's overall performance

• Evaluating business processes from time to time helps keep up with the latest trends in business and helps provide a scale for measuring business performance

• Executing business operations on a day to day basis helps streamline business processes

• Processing raw materials

• Converting the raw materials into finished products

• Providing those products to the customer

​​Manufacturing

• ​Front-end and back-end operations

• Front-end-focus on service delivery to the customer; customer satisfaction is ultimate objective

• Back-end-internal organizational and technological management

Services

• Operations are a mechanism for control

• A connecting point for other departments like HR, finance, marketing

• Decides on the sequence and working order of various tasks in the office

Offices

Operations Managers

• One of the key business people in the organization

• Responsible for ensuring the organization's activities are carried out smoothly and efficiently

• Responsible for all business departments- i.e. processes, purchasing, HR, accounting, inventory, IT

Manufacturing Operations

• Goal is to maximize the use of both the tools and the methods to ensure the most efficient production of goods

• Process includes managing people, machines, technology and other business resources to improve productivity

• 5 Ways this is done:

  • Efficient Management

  • Increasing Profitability

  • Efficient Manufacturing

  • High-Quality Products

  • Managing Manufacturing Operations

• Operations improve overall efficiency​

• Minimum use of resources for maximum productivity

Efficient Management

• ​Operations help increase efficiency and reduce waste which ensures maximum returns in the form of higher profits

Increasing Profitability

• ​Operations ensures better product quality because all resources are targeted at producing goods efficiently

​​Efficient Manufacturing

• ​Operations reduce waste, which leads to lower production costs and higher customer satisfaction

High-Quality Products

• ​Operations ensure all the departments of the business work in harmony and therefore ensures better teamwork

Managing Operations

Next Class: Friday, 3/6/26

Lesson 2.2.3- Factors of Production